1978 Was A Wild Thing of a Year For Gold Both Up And Down

2024 Could Be Even Wilder. Hang On Tight.

• Deposits have remained flat at around $17.5 trillion for the past two months.

• Dollar reserves held at the Fed have also remained flat since January 10.

• LBMA silver stocks have reached a new all-time low of 814Moz, with gold drains at a post-Covid low of 275Moz.

• Open interest in gold up another 28,000 contracts, now 130,000 in less than two weeks.

• If we're in 1978, it's going to be get a lot wilder.

Treat 1978 With Respect

What we have to be careful of, if we're in 1978 and I think we are, is the fact that 1978 was a wild year for gold. It wasn’t straight up. 2024 won’t be either. Chart:

1978 was a good year for gold for sure, but there were two major, scary corrections. Corrections will happen again, especially if it's the hedge funds that are long. We still have one huge financial crisis to go before this thing blow up. That is going to bring everything down, including gold, but gold will go down the least of all assets, just as happened in March 2020. After that's over, and only after that’s over, will we be on a beeline to the End Game. Only then will the dollar go straight down in gold and silver terms.